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EGYPT: United Oil and Gas Provides Abu Sennan licence 2022 Outlook

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Post- period

  • Commencement of the 2022 five-well drilling campaign with the ASD-2 development well, which encountered at least 25.5 metres of net pay and started production end-March 2022
  • Second well in the drilling campaign, the ASV-1X exploration well commenced drilling on 14 April 2022

2022 Guidance 

  • Group working interest production in Egypt for the full year 2022 is forecast to average between        1,500 – 1,650 boepd net;

–       Includes production from current wells with historical decline rates applied, and production from the two further development wells to be drilled this year which are expected to come on stream Q3/Q4 2022

–       Does not include any contribution from our two planned exploration wells

  • Group cash capital expenditure for the full year is forecasted to be approx.$7.2m, fully funded from existing operations

–       circa $6.8m to be invested in Egypt, on five wells, eight workovers, and facility upgrades

Outlook – Focused on growth

  • Cash generation is expected to continue strongly throughout 2022 in line with low-cost production leveraged to higher commodity price environment
  • United’s balance sheet has been significantly strengthened recently via completion of divestments and the debt refinancing providing a platform for growth
  • Multiple growth opportunities exist in our current portfolio

–       Egypt through developing discovered resources, low-cost production and high impact exploration potential in a proven hydrocarbon basin

  • Pursuit of new business opportunities in line with our investment criteria

“The oil price has started the year high, we have a balanced full cycle portfolio, a fully funded drilling and work programme in Egypt, engagement with potential partners on the Jamaica farm-out, and we have exciting new opportunities under review,” –  says UOG Chair Graham Martin.

“Our Egypt production base continues to deliver operational cash flow, and this, combined with our portfolio management initiatives, ensure that United remains in a strong position to execute our strategy. We enter 2022 as a producing, cash generative business, with a complementary portfolio of low-risk development and exploration in Egypt. We have had a great start to the year, with the encouraging result achieved on the first well in the 2022 drilling campaign,” concludes UOG CEO Brian Larkin.

 

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